Microeconomics trivia

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• What do we call goods that are worth more when used together, such as a printer and its ink?Supply, demand and price
• What appears in a market when the price is below equilibrium?Supply, demand and price
• With demand unchanged, what generally happens to the price when supply rises?Supply, demand and price
• By the law of supply, what happens to the quantity sellers offer when the price rises?Supply, demand and price
• With supply unchanged, what generally happens to the price when demand rises?Supply, demand and price
• What do we call the state of wanting many things while resources are limited?Supply, demand and price
• What do we call the side of a market that wants to buy?Supply, demand and price
• What does it mean for the price elasticity of demand to be high?Supply, demand and price
• What do we call goods that can be used in place of one another, such as cola and lemon-lime soda?Supply, demand and price
• What do we call the price set at the point where quantity demanded equals quantity supplied?Supply, demand and price
• Goods that can be used in place of one another, so that demand for lemon-lime soda rises when the price of cola goes up, are called substitutes.Supply, demand and price
• When the price is below equilibrium, goods pile up unsold in excess supply.Supply, demand and price
• Goods that are worth more when used together, such as a printer and its ink, are called complements.Supply, demand and price
• By the law of demand, the higher the price goes, the more of the good people want to buy.Supply, demand and price
• A market price is formed by the interaction of demand and supply.Supply, demand and price
• By the law of supply, the higher the price goes, the more sellers want to sell.Supply, demand and price
• The state of wanting many things while resources are limited is called scarcity.Supply, demand and price
• With supply unchanged, a rise in demand usually pushes the price down.Supply, demand and price
• The price set at the point where quantity demanded equals quantity supplied is called the equilibrium price.Supply, demand and price
• A luxury good is always a Giffen good.Supply, demand and price
• Which market form has many firms competing while selling slightly different products?Market structure and competition
• What do we call, collectively, the factors that make it hard for a new firm to come into a market?Market structure and competition
• What do we call a state in which one firm holds the whole market on its own?Market structure and competition
• What do consumers gain when competition in a market is lively?Market structure and competition
• What do we call a form in which a small number of firms split the market between them?Market structure and competition
• What problem can consumers face in a monopoly market?Market structure and competition
• Which is a correct feature of a perfectly competitive market?Market structure and competition
• What is the most basic test used to sort markets into forms?Market structure and competition
• Which is a correct feature of a monopoly market?Market structure and competition
• What is a firm in a perfectly competitive market called?Market structure and competition
• In a monopolistically competitive market many firms compete while selling slightly different products.Market structure and competition
• A perfectly competitive market means a market in which only a few large firms take part.Market structure and competition
• Oligopoly is a market form in which a great many firms compete freely.Market structure and competition
• Monopoly means a state in which one firm holds the whole market on its own.Market structure and competition
• The more sellers there are in a market, the wider the range of choices consumers can make.Market structure and competition
• Oligopoly means a state in which a small number of firms split the market between them.Market structure and competition
• Monopoly is always the market form most favorable to consumers.Market structure and competition
• The fiercer the competition in a market, the easier it is for a firm to set the price as it pleases.Market structure and competition
• The higher the barriers to entry, the harder it is for a new firm to come into the market.Market structure and competition
• In a perfectly competitive market an individual firm cannot set the price as it pleases and takes the market price as given.Market structure and competition
• What do we call a case that harms others, such as a factory releasing pollutants?Market failure and asymmetry
• What do we call a case that also benefits others, such as vaccination?Market failure and asymmetry
• What do we call the property whereby one person's consumption does not reduce what is left for others?Market failure and asymmetry
• What do we call the property whereby people who paid nothing are hard to keep from using something?Market failure and asymmetry
• Which method taxes polluting firms so that the social cost is reflected in the price?Market failure and asymmetry
• Which of the following is the best example of a public good?Market failure and asymmetry
• What do we call a situation in which leaving things to the market does not allocate resources efficiently?Market failure and asymmetry
• Who is commonly expected to fix things when market failure appears?Market failure and asymmetry
• What do we call someone who tries to enjoy the benefits of a public good without paying the cost?Market failure and asymmetry
• What do we call harm or benefit not reflected in the transaction price, such as a factory's smoke?Market failure and asymmetry
• The market always works perfectly, so there is never any reason for government to step in.Market failure and asymmetry
• Adverse selection appears only in markets where information is fully disclosed.Market failure and asymmetry
• An externality is a cost or benefit not reflected in the market price of a transaction.Market failure and asymmetry
• Someone who tries to enjoy the benefits of a public good without paying the cost is called a free rider.Market failure and asymmetry
• Moral hazard means the phenomenon in which only high-risk counterparties come forward before a contract is signed.Market failure and asymmetry
• A case that also benefits others, such as vaccination, is called a positive externality.Market failure and asymmetry
• Public goods such as national defense and street lighting are non-rival: one person consuming them does not reduce anyone else's consumption.Market failure and asymmetry
• When a problem arises that leaving things to the market does not solve, it is called market failure.Market failure and asymmetry
• National defense and street lighting are classic examples of public goods.Market failure and asymmetry
• The harm neighbors suffer from a factory's smoke is fully reflected in the price of the product.Market failure and asymmetry